Condoms in the Eastern Caribbean
A market analysis by Euromonitor for Options
Prepared by Euromonitor International for Options
December 1, 2012
Contact:
Evan Shippee
Consultant
Euromonitor International
www.euromonitor.com
evan.shippee@euromonitorintl.com
312.922.1115 EXT 8275
Euromonitor International. 2012
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Contents
Study Objectives: .......................................................................................................................................... 3
The study will do the following: ................................................................................................................ 3
Research Methodology ................................................................................................................................. 4
About Euromonitor ....................................................................................................................................... 5
Market overview ........................................................................................................................................... 6
Condom environment ............................................................................................................................... 6
Market size, growth and trends ................................................................................................................ 7
Condom usage ............................................................................................................................................ 10
Condom supply chain.................................................................................................................................. 12
Channels and distribution ........................................................................................................................... 14
Commercial condoms ............................................................................................................................. 16
Leading brand #1: Rough Rider ........................................................................................................... 19
Leading brand #2: Durex ..................................................................................................................... 19
Leading brand #3: Trojan .................................................................................................................... 20
Social marketing condom sales ............................................................................................................... 20
Social condom overview ..................................................................................................................... 20
Social agency/ government agency #1: PSI......................................................................................... 21
Social agency/ government agency #2: IPPF ...................................................................................... 21
Free and generic condoms ...................................................................................................................... 22
Overview ............................................................................................................................................. 22
Government ................................................................................................................................................ 24
Overview ............................................................................................................................................. 24
Forecast....................................................................................................................................................... 25
Overview of forecast ............................................................................................................................... 25
Opportunities for Promoting the Total Condom Market in the Eastern Caribbean ................................... 26
Overview of opportunities ...................................................................................................................... 26
Euromonitor International. 2012
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Study Objectives:
To provide a clear understanding of the condom market in the Eastern Caribbean by answering the
following questions:

What is the size of the overall market for condoms in the Eastern Caribbean?

What are the leading branded products?

What are the leading forms of distribution (retail/non-retail)?

What are the key drivers, trends and future outlook in the market?

In point of sale audits, what condoms are on offer? How are they priced? How are they sold and
marketed?
The study will do the following:

Provide 2009-2011 sales of condoms in volume terms, forecast 2012-2014

Analyze and discuss trends over time, since previous studies were conducted in these markets

Identify the successful brands and their products in the market

Identify the leading forms of distribution and provide information about their initiatives
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Research Methodology
In addition to an analysis of the available literature and sales data, trade interviews with leading industry
players were conducted in order to develop an industry consensus. These interviews are conducted with
many levels of the industry including retailers, distributors, non-profit organizations, clinics, and
government. Examples include Population Services International, the Family Planning Association of
Trinidad and Tobago, the Red Cross, Campaign to End Aids, the Global Youth Coalition on HIV/AIDS, the
Ministry of Health of various governments, and top retail condom distributors.
In addition, 40 stores in Port of Spain were visited to conduct “store checks” where data was collected
on retail product availability. The number of stores in each channel visited mirrored the importance of
that channel in the distribution of condoms.
A variety of stores were visited:
-
19 – Parapharmacy/Drugstore
05 – Bar/Restaurant/Club
05 – Hotel
03 – Convenience/Gas/Independent Grocer
02 – Government clinic
02 – NGO clinic
01 – “Adult” store
Information was collected on all condoms that were available along with product details such as price,
brand, shelf placement, product attributes, et cetera.
See diagram below for overview of Euromonitor research methodology:
Euromonitor International. 2012
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About Euromonitor
Euromonitor International’s mission is to build on its position as the leading provider of quality
international market intelligence and business information services. Our policy of continuous
innovation, new product development and embracing new technologies ensures we remain at the
cutting edge of information solutions.
Established in 1972 Euromonitor International is a global research organisation with over 700 full-time
staff and field-based analysts located in over 80 countries. Privately owned, Euromonitor provides an
independent view of consumer, industrial, service and B2B markets worldwide.
Euromonitor International. 2012
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Market overview
Condom environment
Attitudes towards contraception are improving while cases of HIV/AIDS continue to decline.
The Caribbean is the second most affected region in the world with HIV/AIDS after sub-Saharan Africa.
In 2009, an estimated 17,000 people in the Caribbean became infected with HIV, and approximately
12,000 have died from AIDS (UNAIDS, 2010). According to the CIA World Fact-book, the most recent
estimate of HIV prevalence in Trinidad and Tobago is 1.5%.1
UNAIDS suggests that heterosexual sex is the main route of transmission of HIV/AIDS throughout the
Caribbean. Women are particularly vulnerable to HIV infection; more than half the number of people
living with HIV are women. However, one must consider that statistics of this nature may be skewed due
to the homophobic culture in the Caribbean, and Trinidad in particular. Video interviews with the gay
community in Saint Lucia in a new feature entitled "Taboo or Caribbean Reality," reported that men who
have sex with men (MSM) are often overlooked by prevention, treatment and care services because
there is a high degree of discrimination.2 Homosexual acts are even criminalized in Trinidad and Tobago
under S13 of the Sexual Offences Act 1986. This act was even strengthened in 2000. The Family
Planning Association of Trinidad and Tobago (FPATT) President, Dr. Jacqueline Sharpe supports the
statement that stigmas reduce the willingness to buy condoms and access facilities to get tested.3
It is not completely clear if the situation is improving for cases of HIV in the region. While some reports
indicate a decline in cases of HIV, interviews indicate that this may be a result of incomplete testing and
reporting. According to the Caribbean Epidemiology Centre (CAREC), reported cases of HIV increased
from 1992 until 2008, when they reached an all-time high in the Caribbean.4 The Centre goes on to
state that in 2010, the situation improved and cases of HIV dropped dramatically to their lowest in two
decades thanks to expanding education and distribution of condoms. Contradictory to this report,
interviews with Non-Governmental Organizations suggested that while the number of reported HIV
positive cases identified was declining, the actual number of HIV positive cases may be increasing. This
is due to criticism over the level of testing in the region, particularly for males. In addition, there is no
coordination of testing results at national and regional levels – so while various organizations may be
testing specific target demographics and regions, we are still yet to see clear national and regional
pictures.
It is popular opinion in Trinidad and the Eastern Caribbean that condoms make sex less enjoyable, and
therefore, people who are participating in recreational sex may be hesitant to use one. However, an
improving positive market trend is evident: interviews with retailers indicate that condom purchases are
increasing in volume – a strong sign that not only are people using more condoms, but that they are
willing to pay for them. At the same time, the variety of products is expanding at a variety of price
ranges at retailers, governments continue to allocate part of their budget to procure condoms to be
1
CIA World Fact Book., retrieved September, 2012
2
GIS. July 2012
Express newspaper, Feb 13th 2011
3
4
CAREC website., retrieved August, 2012
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distributed for free in health clinics, and Social Marketing Organizations (SMOs) have multiple outreach
programs in place across the region.
Historically, international donors were more generous in their contribution of condoms and funds,
resulting in booms of free condoms available to much of the population. Yet, as the global economy has
receded, many international donors, like the Global Fund, increasingly emphasize the need to invest
strategically to get the most value for money, rather than increasing condom availability for the general
public, and instead of focusing on prevention programs for the most-at-risk-populations.
Currently, the most at risk groups include migrants, disadvantaged youth, sex workers, and men who
have sex with men. These populations show higher rates of HIV/AIDS than the general population.
Programs, such as CARISMA, are focusing efforts to specifically target these groups, rather than the
entire population, to more effectively utilize resources and increase awareness of STI’s and measures
that can be taken to best avoid them. Beyond the most at risk populations, social marketing, such as
“Got It? Get it” (GIGI), is working to eliminate the social stigma associated with purchasing condoms
among both consumers and retailers and to increase commercial availability to a wider range of retailers
throughout the region.
Market size, growth and trends
Despite declines over the 2009-2012 period, due to dwindling funds in the free sector, the total
condoms market is expected to improve over the forecast as the commercial market expands to
compensate for these declines.
6,000
5,242
5,099
5,000
4,459
Units (000)
4,000
Public Sector (Free)
3,000
Social Marketing (NGO)
Commercial
2,000
1,000
2009
2010
2011
2012
2013
2014
Source: Euromonitor International. 2012
Euromonitor International. 2012
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In 2011, the total condom distribution in the Eastern Caribbean was 4,459,000 units.5 is the total
market is categorized in three ways: Firstly, the traditional commercial channel (retailers,
wholesalers/importers); secondly, Social Marketing Organizations (SMOs/NGOs) which sell subsidized
condoms at a more affordable price and distribute them through social marketing programs; thirdly,
Government, whom distributes condoms they purchase and those donated by international agencies to
clinics throughout the country for free.
The report, “A review of the total condom market in: Trinidad and Tobago, Saint Maarten and selected
countries of the OECS” from Hope Enterprises, projected that the total condom market in 2010 would be
4.6mn units, having declined by nearly 10% from 5.1mn units in 2009. This projection was based on
partial estimates data for 2010. Having obtained updated sales figures from Population Services
International (PSI) in the SMO sector, it was understood that the total condom market declined by 5%
(256,000 units) to a total of 4.8m units for 2010. This decline was largely due to a large drop of 18% in
the free condom sector, but was hedged by strong growth in the commercial sector, as well as from
social marketing. Trinidad and Tobago accounted for 60% of this sampled market, or 3mn units.
In 2011, the total condom market declined by another 7.9% (383,000 units) to reach 4.5mn units. Much
of this decline was due to international organizations withdrawing their funding during this time period,
causing the free condom market to decline by 561,000 units. Some stakeholders assume that these
organizations believed that there was not a significant enough correlation between the distribution of
large volumes of condoms and a reduction in HIV/AIDs to justify the large expense, and thus, they
reduced their funding.6 Below are several examples of organizations reducing their participation in the
condoms market contributing to this decline:
 The National Aids Coordinating Committee (NACC) T&T, which gave financial assistance to
NGOs, ceased to exist in March 2011 at the end of their program which started in 2004.
Without the ability of sourcing their condoms from the NACC, NGO’s have been forced to try to
keep those relationships via the Condom Management Committee
 Global Fund stopped providing funding for IPPF and PSI.
 UNFPA donated almost 25% less in 2011 (U.S.$12.88mn) than in 2010 (U.S.$16.44mn).
Furthermore, UNFPA did not donate any additional female condoms since their 18-month
project that began in 2009 – these female condoms expired in 2011, but can still be found being
distributed through clinics today.
These overall losses in the free condom market were partially offset by significant growth in the
commercial sector and socially marketed sectors that filled in some of the gap in condom supply. From
2009 to 2011, the commercial market expanded by a CAGR (compound annual growth rate) of 12%
(430,000 units), and the socially marketed sector grew from being non-existent to distributing nearly
100,000 units in this time thanks to the introduction of COOL condoms. PSI observed that when the
NACC closed and SLAM condoms were no longer available through free distribution, GIGI figures
improved. While it is not certain whether this is cause and effect, it is certainly interesting to see a
situation where some consumers, who were accustomed to receiving commercial brands via free
distribution, turned to purchasing condoms at GIGI retailers where condom marketing was emphasized.
5
In order to calculate market sizes and shares, Euromonitor utilized a variety of data sources such as
publicly reported figures, data collected during interviews, company sales figures, and store check data.
These were then all factored into calculations to determine market sizes. This data was then tested
against historically reported data as well as modelled data based on demographic and economic data.
6
Interview with PSI - Julia Roberts
Euromonitor International. 2012
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Much of the growth seen in the socially marketed and commercial sectors can be attributed to efforts
from NGOS such as PSI and IPPF. All of the growth in the socially marketed sector can be attributed to
the launch of “COOL” condoms from the Family Planning Association of Trinidad and Tobago (FPATT)
and PSI. This brand launched at varying times between 2010 and 2012 throughout Eastern Caribbean
countries – notably 2010 in Trinidad and Tobago. For the commercial market, the presence of more
cable television advertisements for international commercial brands, like Trojan, helped increase sales.
But more importantly, aggressive SMO campaigns such as “Got it? Get it!” from PSI helped spread
awareness for commercial condoms in areas where commercial brands were not providing any local
marketing or point of sale promotions.
Looking forward, between 2011 and 2014, the total market is expected to see a CAGR of 5.5%, and
reach 5.2mn units in 2014. This growth is attributed to the continued strength in the commercial sector,
along with increased investment in condom procurement from the treasury of the public sectors in each
of the Eastern Caribbean countries.
Retailers and wholesalers consistently report that sales continue to show strong growth in the
commercial sector. This is an indicator that public awareness, attitudes and purchasing behaviors
towards condoms are improving and that they are more willing to spend money on condoms. The
commercial market is continually expanding with new brands. One example includes a recent product
launch for condoms endorsed by a popular local musician: “On April 15, Trinidad and Tobago’s young
singing sensation, Orlando Octave, will officially launch his very own line of condoms, which will be
distributed throughout the Caribbean, Canada and across North America.”7 These condoms will target
the 13-24 years old demographic and carry the slogan “play with it.” The market is not unfamiliar with
brands associated with top artists; SLAM condoms were named after Beenie Man’s hit single, “Ghetto
Slam,” in 1997.
There have also been some less successful commercial brands. In terms of recent happenings, the
brand, “Moods” by HLL Lifecare Ltd., could soon be taken off the market in the next year due to poor
sales. It is believed that the size of the condom is too small for the average Caribbean consumer, and is
not selling well because of its perceived lower quality for the price (U.S.$1.23 for a pack of 3).8 This price
is similar to the price of the top selling brand, Rough Rider. It is understandable that most consumers
remain loyal to the brand that they best recognize.
Condoms with a wider variety of features are growing in popularity and availability.
One of the most significant trends affecting the Eastern Caribbean condoms market is the growing
interest in condoms with value-added features such as various textures, materials, colors, sizes and
flavors. A total of 66 sub-brands from 22 different brands with 13 brand owners were found during store
audits in Trinidad and Tobago in summer 2012, reflecting the growing diversity of products in the region.
Durex even offers “variety packs” so that consumers have the opportunity to sample a variety of their
products with a single purchase.
7
8
The Guardian. March 2012
Interview with distributor
Euromonitor International. 2012
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An improved awareness on the
importance of condom use in
Trinidad and the Eastern
Caribbean has led to a growing
population of discerning
consumers, especially among
the middle and high-income
populations. Culturally,
Trinidadians have a natural
tendency to try new things.
According to one commercial
Source: Euromonitor International. Wordle. 2012
distributor, what is tested and
proven in North American countries tend to do well in Trinidad and Tobago as well. In the context of the
condoms market, this has led to growing demand for stimulants (such as Trojan’s Fire and Ice), colors,
flavors, and ribbed varieties can be found in most retailers. Furthermore, other features appeal to niche
audiences, such as non-latex condoms (polyisoprene) for people allergic to condoms, or larger sizes for
larger men.
Prominent international brands Durex, Trojan, and Lifestyle offer virtually all of these product options.
However, the subsidized brand, “COOL,” as well as the retail brand, “Slam,” dedicated significant
resources to researching popular features. Unlike large international brands, such as Durex and Trojan
who have the resources to distribute a wide variety of condoms, COOL and Slam both focus on a single
product. With such high stakes resting on a single product design, their research was integral in creating
a product that would have the widest appeal among Caribbean consumers. For Slam, the result is a
condom that is flavored, colored, ribbed, and attractively packaged, yet priced at a third of the price for
the international brands. For COOL, the result is a ribbed, flavored condom, clearly marked with “Made
in Germany.” German manufacturing is regarded as a sign of high quality among consumers who are
accustomed to many inexpensive brands instead being manufactured in Asia. This feature helps COOL
condoms stand out as high quality yet inexpensive.
Condom usage
Condom usage continues to improve thanks to growth and competition in the commercial sector along
with continuing efforts to increase awareness and distribution with free and socially marketed condoms.
In 2011, the per capita condom usage for the population between 15-49 years of age was 3.92
condoms.9 When looking at separate regions, we begin to see differences in condom usage between
different parts of the Eastern Caribbean – particularly Trinidad and Tobago. In the 2010 Hope report, it
was reported that while Trinidad and Tobago made up 74% of the Eastern Caribbean population, it only
accounted for 60% of the total condom market. Research indicates two possible reasons for this divide:
 People in Trinidad and Tobago have more options available for family planning, such as
injections and orals, while family planning programs in other parts of the Eastern Caribbean
depend more on condoms as a method of pregnancy prevention.10
9
Population aged 15-49: 1,137,300. Source - Euromonitor
PSI – Julia Roberts
10
Euromonitor International. 2012
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

Condoms may be over-supplied in smaller countries where there is less insight on demand and
where governments are more likely to provide large quantities of condoms to individuals.
Condom distribution during Carnival may not be accurately reported in Trinidad and Tobago.
During this time, many commercial distributors hand out thousands of free condoms for
promotional purposes while some international organizations make one time visits to hand out
large volumes of condoms.
Market growth indicates that per capita condom distribution will improve throughout the forecast
period in the Eastern Caribbean. Between 2011 and 2015, distribution is projected to increase from
3.92 to 4.73 condoms per capita for the population aged 15-49. While much of the growth is from the
commercial sector, free and socially marketed condoms will see some growth in 2013 and 2014 with
reinvigorated campaigns such as GIGI helping to boost the entire market as well as a new round of
funding expected from the Global Fund in 2013. The free and socially marketed sectors will see growth
but will still not reach their distribution levels of 2011 when they held 51% of the market. By 2014, they
will hold 45% of the market and the commercial sector will be the dominant market driver.
Male condoms are by far the product of choice in the Eastern Caribbean. Female condoms, while
available at retailers and clinics, have failed to catch on. These condoms were not cost effective for
retailers and were not as attractive to younger consumers. During field research in summer of 2012,
multiple public clinics in Trinidad and Tobago were found to be distributing expired female condoms –
some expired by over a year. Similarly, in the commercial sector, female condoms are not widely
available, and where they are available, the low demand results in female condoms that expire on
shelves. Even when stock has been purchased, retailers are reluctant to order more due to low
profitability.
Attitudes are becoming more accepting of condom usage for STI prevention as well as pregnancy
prevention and condoms are slowly making their way into retailers as more common items.
According to interviews with NGO’s, retailers, and distributors, it is clear that in Trinidad and Tobago,
overall acceptance of condom use is growing as education, resources, and public awareness due to ongoing campaigns from the government, as well as widening distribution supported by NGO’s. It is the
firm belief from many organizations that “if people have a condom, they are more likely to use a
condom”.11
Free and SMO brands focus their campaigns on the reduction of unwanted pregnancies and reduced risk
of contracting STIs. This differs from commercial campaigns that are more likely to promote product
features. With the increased awareness related to condom use and safe sexual practices, commercial
brands capitalize on the message of “safe” and “pleasurable” sex as well.
The commercial sector has done little to increase the general awareness of condom usage. On the other
hand, the free sector has several outreach programs, as well as promotional events throughout the year
to improve condom usage. Most recently, The Trinidad and Tobago Office of the Prime Minister (OPM)
held one on August 23rd with the theme “HIV Is Everybody’s Business,” and included HIV testing and
counseling, giveaways, an interactive Q & A session, and live musical entertainment.12
11
12
Interview with PSI
th
Official website of the OPM, retrieved August 18 , 2012
Euromonitor International. 2012
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Price is the strongest influence on condom sales.
Price is one of the most influential factors in the distribution of condoms. The average Eastern
Caribbean consumer is not accustomed to paying high prices for condoms – especially when some
commercial brands such as SLAM can be found for free from the government clinic yet for U.S.$0.40 at a
nearby pharmacy. One distributor suggested that some retail customers do not even look at value – just
immediate price – they went on to justify this by explaining that Rough Rider condoms were their best
seller yet were priced in the bottom third of commercially available condoms. The manager of a leading
adult entertainment store sells condoms individually because it is immediately cheaper, although
collectively three units purchased this way typically costs more than the pack equivalent. Not only has
this been discussed in trade interviews in 2012, but was historically validated in a randomized controlled
trial of price as a barrier to condom use conducted by PSI in 2007 in Trinidad, Tobago, St. Vincent and
the Grenadines. The study stated that:
A strong causal link is found between condom price, purchase and likely use. Price
constitutes the single most important barrier to condom purchase in these two countries.
Reducing prices to a level of U.S.$0.15 would have a greater impact on purchases than improving
attitudes towards condoms. Currently, approximately 16% of this population does not usually
purchase condoms, yet when, randomly, a condom was offered to these persons at U.S.$0.15 per
condom, nearly half purchased it.
Social behavior is also a strong influence on condom usage and certain times of the year see significant
boosts in condom usage – particularly Carnival in Trinidad and Tobago.
Carnival season is a known cultural influence for increased sexual activity. Large crowds of people, in a
party environment, dressed in seductive costumes can be a recipe for unsafe behaviors. During this time
the sex trade is in its peak as tourists visit spending freely with highly valued foreign currency
According to Salorne Mc Donald, the Regional Behavior Change Communications Consultant for PSI, the
"Carnival baby" is not just a decades-long running joke. According to Central Statistical Office numbers,
there is around a 15 percent increase in the number of live births every November and December
without fail.13 More pregnancies mean more unprotected sex and imply an increased risk of a range of
sexually transmitted infections, including HIV.
The increased sexual activity during Carnival affects condom distribution significantly. Retailers and
distributors both noted a marked increase in condom sales during this time. In the commercial sector,
low-income brands, like “Rough Rider,” are favored. People during Carnival use whatever is available as
encounters that lead to sex can be spontaneous. Organizations are well aware of the increased risk
during this time and free and SMO condoms are more heavily distributed.
Condom supply chain
The commercial condom supply chain is much less complex than the supply chain for free and socially
marketed condoms.
13
th
The Guardian Newspaper, March 4 2011. “Carnival Sex: Why people still aren’t playing it safe”
Euromonitor International. 2012
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The supply chain for commercial condoms is quite flat and basic. Wholesalers import commercial
brands from international brand-owners/distributors. Once these products arrive in country, there are
no other middle-men in the distribution process. They go straight from their respective wholesaler
directly to retailers, usually on a bi-weekly basis. The quantity sold to retailers is determined by the
demand of their customers.
While this is an efficient system, it encounters some shortcomings in factors beyond the control of
wholesalers/importers. For example, stock-outs occur in the commercial sector due to port/customs
inefficiencies. Often, retailers overstate their order sizes to overcompensate for supply-side issues like
these. According to multiple wholesalers and importers, it takes too long to receive goods
(approximately 1 week) and any crisis, such as a strike at the port, affects everyone. Problems exclusive
to Trinidad that have historically affected distribution include irregular flooding in 2011-2012, increased
traffic congestion, and disruption with utilities. Ultimately, in this sector, stock-outs result from the
supply-end and not a miscalculation of demand. This system has not changed over the years and there
are no signs of any improvements on the horizon.
Trinidad & Tobago wholesalers and their respective brands:
1. M&D (Marketing and Distribution): Kimono
2. AMCO (Alston’s Marketing Company Ltd): Durex
3. Sun Crest International Ltd.: Ansell products (Rough Rider, Lifestyle, and Contempo)
4. Pharmaco: Slam and Moods
5. Oscar Francois: Trojan and Erotim Condoms
Socially marketed condoms supply chain
The two prominent NGOs in Trinidad and Tobago are FPATT (an IPPF affiliate) and PSI. FPATT has their
socially marketed condoms directly imported into the country and have historically received assistance with
funds from the international organization “Global Fund.” These items reach consumers through outreach
programs directed towards the most at risk populations and Planned Parenthood clinics. FPATT imports and
distributes condoms to these clinics and to PSI. A portion of their stock is given away for free, and some is
shared with PSI to reach the population through educational outreach programs including the use of trained
condom sales and promotion agents (CSPAs) who help educate at risk populations as well as work with sales
staff in order to minimize overcritical attitudes directed towards people purchasing condoms. The condoms
distributed are branded “COOL” condoms which sell in a pack of three for U.S.$0.54. The profits from these
sales are then used to cover costs involved with the operation of FPATT clinics. Beyond Trinidad and Tobago,
PSI has lead an effective campaign to increase condom distribution to non-traditional outlets such as bars,
barbers, convenience stores, gas stations, and independent grocers.
Government/free condoms supply chain
In Trinidad and Tobago, free condoms reach consumers in several ways. Firstly, they are distributed
through the Planned Population Unit (PPU) in the Ministry of Health which procures and stores stock
through the National Insurance Property Development Company Limited’s (NIPDEC) who then
distributes it to all public sector clinics and the Ministry of National Security. Funds from UNFPA are also
used to procure and store stock through NIPDEC and compliment the Government’s. The
Pharmaceutical Procurement Services (PPS) in St. Lucia serves the same function as NIPDEC for the rest
of the Eastern Caribbean.
Euromonitor International. 2012
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IPPF/FPATT import directly into the country, and not through NIPDEC. In 2009, 15% of their issued stock
was given away for free; in 2011 it was 19%; and 30% of FPATT’s condom stock was given away for free in
2012. Global Fund assisted them with support from the regional GFATM grant through PANCAP ending in
2008. IPPF & PSI only distribute free condoms in the Eastern Caribbean on an extremely limited scale. These
condoms are usually given away at family planning clinics and outreach programs. NIPDEC keeps all of its
data computerized and well maintained so it is an efficient system in relation to other Government
operations in the Caribbean.
The CHAA also imports directly into the country (not through NIPDEC) with funding assistance from USAID.
These condoms reach consumers solely through outreach programs. While they were not directly available
for comment, previously reported data of 605,000 units for 2010 were grossed up by 25% for 2011 following
the initiation of USAIDs “Action Project 2” where funding is higher by 25% in the first year.
Channels and distribution
Much of commercial condom distribution depends on pharmacies, while the majority of condoms are
still distributed free by government agencies.
2011
2010
2%
2%
Subsidized/free
40%
Commercial
58%
50%
48%
Other
Source: Euromonitor International. 2012
By far, government agencies are the most important channel for condom distribution, making up nearly
46% of distribution in 2011. Pharmacies followed, making up 38%. Beyond this, most channels have
relatively small shares – each below 5%. Interestingly, pharmacies have fairly limited distribution, with
only 378 locations throughout the Eastern Caribbean, compared to independent small grocers with
3,112 different locations. This is strong support for programs, such as GIGI, that are working to shift
consumer perception of condoms from a pharmaceutical item to an every-day item that can be found at
any corner store.
In the largest market, Trinidad and Tobago, the primary retail channel for the distribution of retail
condoms to consumers is in pharmacies, which represent around more than 50% of the total condom
market distribution and 73% of commercial condom distribution. Prices are generally the same between
pharmacies, with variance less than 10% across outlets. In other parts of the Eastern Caribbean,
Euromonitor International. 2012
14
pharmacies constitute one third of the total condom market or more. One example is Antigua, where
less than 28% of condoms are purchased from pharmacies.14
Government agency
All Pharmacies
1%
Supermarkets/hyper
markets
Social agency
4%
4%
4%
46%
36%
Source: Euromonitor International. 2012
Independent small
grocers
Convenience stores/
Forecourt Retailers
Mixed retailers
Other
Away-from-home;
bars/clubs
Away-from-home
vending
Away-from-home;
hotels/motels
The remaining share of the commercial
market is widely spread. It consists of
small grocers, supermarkets, convenience
stores, and hotels. The most popular
supermarket chain in Trinidad is “Hi-Lo”
with approximately 25 locations nationwide. Some Hi-Lo outlets have
pharmacies inside where condoms can be
found. Convenience stores are not a
significant point for distribution in the
region, but play a small role in the late
night market due to few pharmacies
having long hours. Of the 19 pharmacies
visited in store checks, the average daily
operation was 12.5 hours with most
closing before 10:00pm. While there are
very few convenience stores open 24/7 in
Trinidad, Peakes Gas Station was found to
carry condoms during our 2012 store
check.
Marketing in all retail areas typically
involves tactful product placement at counters to encourage impulse buying and cross-merchandizing.
Condoms are placed next to related items such as lubrication or various sex toys. That being said,
marketing from commercial condom brands is non-existent with few points of sale promotions, no local
marketing campaigns, and no examples of any aggressive campaigns between pharmacies on pricing or
promotions. It is for this reason that programs such as GIGI have been so instrumental to condom sales
in non-traditional retail outlets by providing promotional materials that commercial distributors or
brand owners such as Trojan or Durex would otherwise not provide to increase product awareness.
While in the long run, SM condoms are meant to make consumers feel more accustomed to paying for
condoms and more likely to purchase them at full retail price, there are a few signs of a short run
correlation between supply and demand of SM and commercial condoms. Recent surges and drops in
funding resulted in rises and falls of SM condom supply, yet during this time, the retail market continued
to grow steadily with little regard for the volatility of SM condom supply.
Influences of condom pricing and its effect on distribution
In Trinidad and Tobago, there are no customs/duties import taxes on condoms, only value added tax
(VAT). However, if high import taxes were to be introduced, they would have an adverse effect on
consumption. Price is a significant, if not the most significant, factor where purchasing a condom is
concerned and an increase in taxation would undoubtedly harm distribution of commercial condoms.
14
KN Consulting, 2012
Euromonitor International. 2012
15
Both distributors and retailers noted that prices have risen in recent years. This is due to increasing
manufacturing costs passed down to suppliers as well as increased transportation costs. Looking
forward, prices are expected to rise due to inflation, increasing transportation costs, and the costs of
raw materials that continue to grow. Specifically, distributors cite concern that the cost of raw materials
to produce latex may continue to increase. There have been recent talks about removing or reducing
the gas subsidy in Trinidad and Tobago.15 Such an adjustment would harm the growth of commercial
condom sales as the increased transportation cost would result in increased prices.
Not all price increases are due to increasing supply chain costs. Retailers also noted that Durex recently
repackaged their condoms, resulting in a slight price increase at the time. The novelty of the new
packaging apparently paid off since there was no apparent drop in sales as a result of the price increase
and Durex continued to gain market share.
In the event of a sudden price increase (due to a new import tax or reduced fuel subsidy), the market
would likely see a decline in commercial and SM sales, and a boost in the demand for free condoms,
along with potential growth in the gray market in Trinidad and Tobago. Leading distributors suspect that
there is a gray market in Trinidad where gray market players distribute condoms without VAT. In this
market, the products are sold to retailers at a lower price. Consequently, distributors and wholesalers
suffer due to gray market distributors moving in and replacing legitimate distributor sales to retailers for
a lower price by avoiding the VAT. Distributors currently suspect that the gray market moves a truckload of condoms to retailers each month in Trinidad and Tobago.
Commercial condoms
The commercial market, led by Rough Rider, followed by Durex and Trojan, saw strong growth between
2009 and 2011 thanks to strong competition between an increasing variety of brands.
The popularity of commercial condom brands
in Trinidad and the rest of the Eastern
Caribbean has grown significantly since 2008,
where the commercial market consisted of
1.1mn units. By 2011, distribution more than
doubled to nearly 2.3mn units. The three
leading commercial brands are Rough Rider,
Durex, and Trojan, which collectively capture
nearly 60% of the total condom market.
Brand Rankings (2011 Volume)
Rough Rider
30%
39%
Durex
Trojan
Lifestyle
4%
Slam
7%
Others
11%
9%
To illustrate the growth of the commercial
sector, condom sales volumes have increased
Source: Euromonitor International. 2012
by nearly 400,000 units, or 22%, between 2009
and 2011. This indicates continued improvement in attitudes, awareness, and behavior towards safer
sex in recent times, particularly for lower risk populations in the commercial sector. This growth is
especially encouraging because it took place during a major decrease in free condoms’ availability which
declined by 1.1mn units in the same time period. This shows the willingness to pay by consumers who
previously may have been receiving condoms for free.
15
rd
The Guardian newspaper, Jan. 3 2012
Euromonitor International. 2012
16
In general, Caribbean consumers prefer commercial brands, with a growing preference towards
international brands. According to some retailers, there tends to be a stigma of poor quality attached
to anything local, especially subsidized. According to one distributor, the current mentality is that
“foreign things are better.”
Consumers are attracted to the increasing variety and range of condoms available of commercial
brands. As condom use becomes more prevalent among sexually active populations, consumers are
increasingly receptive to new brands and features, to the point of expecting a variety of product options
at their retailer. Some stores have 30 varieties readily available.
Rough Rider is the leading brand in the market, with a 39% share thanks to strong brand recognition and
distribution within both commercial and free markets. While their sales have continued to increase,
their market share has dropped slightly in the past five years, due to strong growth from competing
commercial brands, such as Trojan and Durex that have cut into their share. Much of this is likely due to
the wide variety of condoms that Trojan and Durex offer compared to the limited selection of condoms
that Rough Rider offers. Of the 20 retailers identified in store checks selling Rough Rider condoms, only
one offered a variety beyond “The Original Studded Rough Rider.” Sun Crest International, the
distributor for Ansell Healthcare products, which includes Rough Rider, also sells their stock to the
Government for the free sector. This stock includes their other condom brands, such as “Prime.”
Rough Rider by Ansell Healthcare Products LLC, is the oldest of the leading 3 brands in Trinidad and the
Eastern Caribbean. Its low price and consumer familiarity has been attributed to its success as the
dominant brand throughout the Eastern Caribbean. In some places, such as St. Vincent and the
Grenadines, it is slightly less popular but remains the market leader. It targets low-income consumers,
yet despite being a budget brand, it is studded/ribbed which is a feature that consumers value. One box
of three units costs between U.S.$0.74-$1.40. Relatively speaking, the SM condom “COOL” is also in the
same price range at U.S.$1.09, while the average price of a Trojan or Durex condom is a steep premium
at two to three times more. Also helping Rough Rider’s name recognition is the percentage of their
condoms that are distributed for free.
Average Price by Brand (2012)
$3.00
$2.50
$2.00
$1.50
$1.00
$0.50
$0.99 $0.90
$0.82
$0.42
$0.38
$-
Source: Euromonitor International. 2012
Euromonitor International. 2012
17
Durex and Trojan compete head-on for the mid to high-end market and are the most expensive brands.
Store checks in 2012 show that the average price for Trojan condoms is $1.00 per unit, while Durex
averages at $0.82. Both are priced well above the market average price of $0.75. Both brands offer a
wide variety of product offerings and have recently enhanced their packaging. Durex held an 8% share in
2007, and grew to an 11% share in 2011. The fastest growing brand was Trojan, holding a 6.2% total
market-share in 2007 that grew to a 9.4% share by 2011. All of this happened while the commercial
market was expanding rapidly due to aggressive international television advertising, reduced supply in
the free sector, and an increased preference for high-end condom products that offer greater variety
and perceived quality. While price is the most important purchase decision for the majority of
consumers, it can safely be assumed that the more affluent population is drawn to the variety, brand
recognition, and quality of these premium brands. Trojan has not seen the same level of growth in 2012
due to issues with the supply chain, rather than consumer demand. 16 At the same time, the Lifestyle
brand continues to grow and gain share.
The brand Lifestyle, which is also owned by Ansell Healthcare Products LLC, has similar product offerings
to Trojan and Durex, and consistently appears in similar retail placement to these two competitors
wherever they are sold. During interviews with many leading retail outlet managers/owners, it was
often indicated that Lifestyle does not sell as well as Trojan and Durex, but maintains strong market
share. All three brands offer a wide variety of products to appeal to different consumer needs, such as
stimulants, sizes, colors, flavors, and sensitivity. Their continued innovation and growing variety is a
significant driver for the growth witnessed.
Slam condoms distributed by No Glove No Love Ltd., which held approximately 15% of the total market
in 2007, declined to a 4% share of the total market in 2011 solely due to internal issues and
distribution.17 The features of the pink, strawberry flavored condom, dotted for texture, sized larger,
had its packaging tested for like-ability of the brand, was well researched and maintains a good
reputation with consumers.
Domestic advertising or promotions are uncommon.
Competition is increasing, yet wholesalers generally report that discount pricing of one brand does not
lead to a drastic decrease in volume sales of another. There are no aggressive brand-specific
promotions, except for those viewed on international platforms (cable television and the internet).
Commercial brands have invested in very little local marketing. Most marketing in retail outlets depends
on impulse buying and cross-merchandising, but not in favor of any particular brand. In many markets,
the only marketing materials present are those from PSI’s GIGI campaign that promotes condom usage
and purchasing in general.
While local marketing initiatives are uncommon in the Eastern Caribbean condoms market, Slam
condoms, a Jamaican brand from No Glove No Love Ltd., is one of the few brands that has invested in
local marketing. Their main promotion is an annual calendar featuring attractive Caribbean women.
These women are also branded on the products’ packaging. The product’s features and packaging were
researched before it was launched in order to appeal to consumers looking for a wider variety of
features so that Slam could compete with international brands such as Trojan and Durex. Unlike many
16
17
Interview with distributor
Interview with distributor
Euromonitor International. 2012
18
other brands, Slam does not have a wide variety of products in its portfolio. Instead, its efforts are
focused on a single condom that is flavored, colored, ribbed, and attractively packaged.
Taxation has little effect on the market currently, but has led to a gray market that looks to avoid taxes.
The potential impact of taxation on these brands increases the cost of an already premium-priced
product. An increase in taxes on condoms would affect the sales of premium condoms negatively, but
not significantly. This is because the majority of consumers that purchase them do so for the variety of
premium features and perceived quality that is not available in lower priced condoms. Therefore, these
consumers are less likely to trade down to an economy brand.
If taxation were to increase, we would most likely see growth of the gray market where condoms are
distributed illegally and without proper taxation. This would impact wholesalers and distributors
adversely, but will pass on saving to retailers and the end-consumer.
Leading brand #1: Rough Rider
Rough Rider by Ansell Healthcare Products LLC is the leading brand in the market with approximately
39% market-share in 2011. It has been on the market since the 80s and its growth in terms of units has
grown when the total market grew. However, as a percentage of the total market, it is losing some share
to newer brands that are seeing stronger growth, though from a much smaller base.
Retailers suggest that the introduction of newer brands has not taken away sales from the market
leader. This shows that the commercial market continues to grow with consumers’ increasing demands
for larger selections to choose from. That said, Rough Rider is a staple on the market and has
maintained its leading position thanks to its long history. One pharmacy owner stated, “people grow up
here (Trinidad) hearing the name ‘Rough Rider’ so it is what they go for”.
Rough Rider maintains its market leadership as a low-cost provider. It is priced between U.S.$0.74$1.40 for a three pack, well below the commercial average of U.S.$2.61. Beyond this strategy, there
have been no historic promotions or marketing campaigns. Furthermore, no upcoming promotions are
expected.
During store checks in 2012, Rough Rider was found to be available in 66% of retail outlets. When
private clinics/dispensaries and pharmacies within hospitals were visited, it was the only commercial
brand condom that was carried. These private clinics do not get as much sales as outlets within
supermarkets, malls, or drive-thrus. Consequently, their limited selection will naturally be the most
popular, affordable brand.
Leading brand #2: Durex
Durex is the second leading commercial brand and the leading upper-income brand in Trinidad and the
Eastern Caribbean. The brand entered the market in the early 90’s, which helped it maintain more share
than its main competitor, Trojan, which entered the market in 2000. This brand is recognized as an
innovator in condom technology, introducing new and varied products for additional stimulation,
enjoyment and prolonged sexual activity. This brand maintains its position of highest sales in the midupper income bracket, and 2nd over-all after Rough Rider. Its growth has steadily increased from 2007 to
2011 from 7.8% to 11% of the total market.
Euromonitor International. 2012
19
One reason for the increased market-share and sales is the introduction of new and varied products.
Trinidadians and other Caribbean people are becoming more “globalized” and aware thanks to
expanding internet penetration and increased levels of education through Government programs like
“GATE” (Government Assisted Tertiary Education). University students utilizing the GATE program are
more exposed to targeted campaigns by SMOs like FPATT. While this may have increased demand for
SM condoms, mid-high end products, like Durex, will also experience increased growth as the poverty
gap shrinks and standard of living improves.
Durex’s current pricing strategy is mid-high range. The average durex product is between U.S.$1.57 and
$2.87 for a three pack. This is two to three times more than low-income and subsidized brands like
Rough Rider, “COOL”, or Slam. This pricing is appropriate for its positioning as a quality brand. At a lower
price, consumers would attribute it to being low-quality and buy a competitively priced mid-high income
alternative like “Trojan” or “Lifestyles.”
Durex products were imported by the wholesaler AMCO in Trinidad. These products are then directly
delivered to retailers. It should be noted that up until 2012, Durex was distributed by the importer
“Marking & Distribution,” but in 2012 the brand was passed on to AMCO.
Leading brand #3: Trojan
The Trojan brand by Church and Dwight Co. has been on the market since the year 2000 and has grown
from 6% total market share in 2007 to more than 9% in 2011. While Trojan continues to grow through
2012, interviews indicate that growth of the brand recently slowed while its competitors, Lifestyle and
Durex, continue to perform well. This slowdown is believed to be due to the market for high-priced
condoms approaching saturation, and consumers experimenting with other brands, such as Lifestyle.
One popular Trojan product is the “Fire and Ice” stimulant variety of condom. No similar product is
offered from any competitors.
The pricing strategy is one of high quality for high price. Where competitors, like Lifestyle, aim at
providing the “best value” (good features for a low price, and mid-range prices for quality, like Durex,
Trojan stands out with their premium price. Their current flagship sub-brand, “Fire and Ice,” retails for as
much as U.S.$4.66 per three pack, almost double the average price of Durex.
Similar to other top brands, there are no local promotions. Instead, the brand depends on international
television advertisements that currently focus on the brand’s newest “Fire and Ice” condoms. These
international commercials have been helpful for an innovative brand such as Trojan since they notify
consumers of new products on the market.
Trojan is not as widely represented in the commercial sector as Durex and Lifestyle, but it can be found
in many places that these brands are, and virtually in all pharmacies. This more limited distribution
network is likely due to the high price the brand demands that only caters to the upper income
demographic.
Social marketing condom sales
Social condom overview
Funding from international donors is hurting, and new efforts are being made to more closely target atrisk populations rather than general widespread distribution.
Euromonitor International. 2012
20
In Trinidad, where social marketing condoms are concerned, the two social marketing organizations are
PSI and International Planned Parenthood Federation (IPPF). The IPPF also includes its respective
subsidiaries like FPATT (Family Planning Association of Trinidad and Tobago). FPATT is considered the
leading body since they are the larger of the two organizations and provide PSI with some of their stock.
Social marketing programs are increasingly adjusting their strategy away from improving general
condom availability and awareness, and instead, focusing on distributing to the most at risk populations.
According to the Global Fund, “donors, the Global Fund included, are increasingly emphasizing the need
to invest strategically to get the most value for money. On a practical level, this means that in countries
where the epidemic is concentrated in most-at-risk groups (sex workers, men who have sex with men,
etc.), prevention efforts are targeted specifically towards those groups and investments in prevention
programs for the general public have been reduced. This would explain why the program no longer
provides free condoms to the general public.”
Social agency/ government agency #1: PSI
“PSI is a global health organization dedicated to improving the health of people in the developing world
by focusing on serious challenges like a lack of family planning, HIV and AIDS, barriers to maternal
health, and the greatest threats to children under five, including malaria, diarrhea, pneumonia and
malnutrition.”18 They distribute condoms through both free and socially marketed condoms.
A prominent campaign in the SM sector was PSI’s “Got It? Get it” (GIGI) in 2011. It aimed at empowering
Caribbean youth to be sexually responsible. It was distinctive in its approach, as it promoted positive
behavior (condom use), and signified condom availability rather than advertise any one particular
product or condom brand. The GIGI campaign included slogans like “Sex nice…but de aids ting,” videos
promoting condom use among sexually active women on their website, and respective t-shirt giveaways
at bars.19
PSI collaborated with FPATT on the “COOL Condoms for Safe Sex” initiative in 2011. This campaign looks
to promote the subsidized condom brand “COOL”. PSI believes that COOL condoms have better
features than many products on the market, higher quality than the market leader, Rough Rider, and
that these attributes must be successfully conveyed to consumers before the brand can reach its
potential for success. COOL condoms are ribbed and come in a variety of flavors. Importantly, they also
state “Made in Germany” on the package. This is a major indicator of quality for many consumers and
differs from lead brands like Rough Rider, Durex and Slam that are made in Thailand. New promotional
efforts planned for 2013 including new slogans, posters, programs at schools, bars, Facebook and the
web will give the market a substantial lift. Although it is unclear whether the IPPF affiliates will have
adequate marketing budgets for COOL going forward. In addition to the IPPF clinics, COOL condoms are
available in pharmacies as well as other non-traditional outlets.
Social agency/ government agency #2: IPPF
The International Planned Parenthood Federation is a global NGO whose mission is “to improve the
quality of life of individuals by providing and campaigning for sexual and reproductive health and
rights.”20
18
th
Official website of PSI, retrieved September 17 2012
19
The Guardian newspaper, July 31st 2012)
20
th
Official website, retrieved September 19 , 2012
Euromonitor International. 2012
21
Their marketing strategy is to capture the most-at-risk-populations for HIV/AIDs, young people and
adolescents, pregnant women, and anyone seeking gender equality and contraception. They donate
around 15% of their total condom share to the free market.
The primary driver behind the distribution of free and socially marketed condoms is the amount of
funding that agencies are able to secure. In addition to this, they earn money from selling products and
services at their clinics. Unfortunately, the amount of funding that IPPF received from the Global Fund
was drastically reduced in 2008. This is expected to affect the supply of condoms from IPPF until 2012
with the Global Fund’s Phase II evaluation. Besides the Global Fund, IPPF also received significant funds
from the U.S. and Canadian Government that are expected to continue.
Between 2008 and 2010, IPPF focused their efforts towards universities, such as the University of the
West Indies in Trinidad. This program was largely unsuccessful due to the negative perception of the
condoms from the majority of students. Since the condoms were distributed in large volumes with
seemingly no per-person limit, students began to perceive the condoms as low value, and therefore,
ineffective. Due to this popular perception, the majority of these condoms were most likely wasted or
re-sold via the gray market.
The “COOL Condom” marketing campaign resulted in strong growth for SM condoms, albeit from a small
base: while there were no other SM brands before COOL, by 2010, distribution had reached 132,000
units. Following this, distribution in Trinidad and Tobago withered as fewer resources were allocated to
marketing in 2011 and 2012. In other OECS islands, COOL continued to spread by being introduced in St
Lucia, St. Vincent and the Grenadines, and Dominica between 2011 and 2012. Looking forward,
advertising efforts are planned to increase dramatically in 2013. This campaign will include slogans,
giveaways, and social media that are expected to return the SM condom sector back to the same
volumes as 2011. This update will include refreshing marketing plans, pricing strategies, packaging, and
direct sales through promotion agents.
Free and generic condoms
Overview
Free condoms make up the largest part of the total condom market and are distributed through multiple
outlets and receive funds from a multitude of sources.
The main distribution channels for free and generic condoms are public health clinics, family planning
clinics, the Ministry of National Security, and outreach programs held by NGOs/SMOs and/or the
Government. There are three (3) points of entry:
The Planned Population Unit (PPU) in the Ministry of Health procures and stores stock through NIPDEC
C40, then distributes it to all public sector clinics and the Ministry of National Security. Funds from
UNFPA are also used to procure and store stock through NIPDEC and compliment the Governments
input. The PPS (Pharmaceutical Procurement Services) in St. Lucia serves the same function as NIPDEC
for the rest of the Eastern Caribbean.
IPPF/FPATT import directly into Trinidad and Tobago, and not through NIPDEC. In 2011, 19% of their
condom stock was given away for free through their clinics or through their partners such as PSI.
Euromonitor International. 2012
22
The CHAA also imports directly into the country (not through NIPDEC), with funding assistance from
USAID. These condoms reach consumers solely through outreach programs.
The International Fund for the Red Cross (IFRC) distributes 100,000 condoms in Trinidad annually
through weekly outreach programs at prisons, schools, and training fairs, but will no longer continue to
do so globally after 2012. According to the director of the Red Cross in Trinidad and Tobago, they feel
like excess funding has been put in without behavioral change. Consequently, their funding will now be
focused towards non-communicable diseases, for example: diabetes.
The Global Fund is scheduled for an evaluation of Phase II funding in November 2012 for its next five
year grant. Since they strongly support the distribution/use of condoms as part of a prevention strategy
and have shown a 39% increase in global condom donations since 2011, it is expected that a new grant
should follow. Considering this, we have forecasted a more optimistic free condom market after 2012
with growth between 3-4%.
Key Players
The Ministry of Health is a branch of the Government in Trinidad and Tobago responsible for public
healthcare. The PPU (Population Programme Unit) is a sub-branch concerned with reproductive health.
UNFPA (United Nations Population Fund) is an UN organization. One of their aims is to ensure that
"every pregnancy is wanted, every birth is safe, and every young person is free of HIV and sexually
transmitted diseases.”21 They donate condom stock to compliment the Government’s in NIPDEC’s C40
warehouse.
The National Insurance Property Development Company Limited (NIPDEC) is a private organization
that provides procurement management, stores, and distributes condoms provided to the Government
and those donated to the country in its C40 warehouse in Trinidad and Tobago.
The PPS (Pharmaceutical Procurement Services) in St. Lucia serves the same function as NIPDEC for the
rest of the Eastern Caribbean.
IPPF/FPATT and PSI are also key players in the SM condom market. Their stock is imported
independently from NIPDEC.
CHAA (Caribbean HIV/AIDS Alliance) is an NGO whose vision is “a region where people do not
experience discrimination or die of AIDS.”22 They distribute for free for education and promotion
purposes. They import condoms without the use of NIPDEC, and USAID helps with funding.
USAID (United States Agency for International Development) is an agency primarily responsible for
administering civilian foreign aid, such as humanitarian assistance. They help CHAA with funding to
procure condoms.
21
22
th
Official website, retrieved September 17 2012
th
Official CHAA website, retrieved September 17 2012
Euromonitor International. 2012
23
The Trinidad and Tobago Red Cross is a non-profit humanitarian organization that focuses their
resources on providing communities with disaster preparedness and quality health programmers
designed to empower the most vulnerable in society.
Concerns over leakage into the gray market do not appear to be rampant problems, but could become
more of an issue if the use of free commercially branded condoms were to increase.
Leakage occurs in the public sector from two potential sources:
Leakage occurs from lack of moderation in some outreach programs. While PSI limits individuals to
taking 3 condoms, previous donations by FPATT convey that they do otherwise, and let anyone take any
amount, just as in the case of the University of the West Indies.
People take advantage of the high volumes of condoms the government is willing to hand out for free to
individuals, particularly branded condoms. It is possible for consumers and even individuals on the
inside to take these branded condoms and re-sell them to the commercial sector. A lead
distributor/wholesaler insists that it happens and he believes it is because retailers would not have to
pay taxes when they purchase. During store checks in 2012, one commercial brand seen in clinics was
“Prime,” that typically retails for between $0.30-0.36 in pharmacies and drug stores. If an individual
were to take advantage of the free distribution of this brand, they would stand to make a modest profit
from selling it to retailers. Additionally, retailers may be inclined to purchase from them, since they
would be able to avoid taxes on the purchase and still be able to distribute a known commercial brand.
The level of corruption commonly associated with Trinidad and Tobago suggests that leakage is likely.
On the CPI (corruption perception index) by Transparency International, Trinidad is rated 3.2 out of 10,
10 being clean and 0 being corrupt. It is ranked 91/182 countries.23
Government
Overview
Issues with the supply chain and funding have left many clinics with dwindling stock of condoms.
Government agencies in Trinidad have historically been inefficient in coordinating a national response to
HIV/AIDS. At the clinics visited in summer 2012, all but one brand of condoms were out of stock, and all
female condoms were expired. Furthermore, according to staff and nurses, this was not an irregular
occurrence. This is partially due to the heavily supply-driven distribution of condoms based on their
budget and donations, as opposed to demand driven. Demand stimulated through advocacy and
communication must be complemented with a reliable supply, otherwise it is useless.
23
transparency.org, retrieved September 18th 2012
Euromonitor International. 2012
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Part of this inefficiency is a result of the quantity of condoms that is given away with certain outreach
programs. During these campaigns and outreach programs, limitations must be established on the
quantity of condoms that can be given to one person at one time to help limit black-market leakage and
over-all waste. Similarly, better regulations need to be put in place at public clinics.
Taxation, combined with these inefficiencies and loopholes, provides opportunists with a reason to
exacerbate a black or gray market. There are currently no import taxes on condoms, only VAT.
Forecast
Overview of forecast
The market is expected to grow thanks mostly to continued growth in the commercial sector, while
agencies will struggle to access funds for free or SM condoms.
In 2011, the total market declined by 7.9% to 4.5mn condoms. This decline was primarily due to a sharp
decline in the free sector as funding was reduced. At the same time, the commercial market expanded
by 20%, but this was not enough to compensate for the declines in both free and socially marketed
condoms. Looking forward, the total condom market will grow by a CAGR of 5.5% through 2014,
primarily due to the commercial sector growing by a CAGR of 9.9%. By 2014, the total market is
forecasted to reach 5.2mn units.
Increased education through Government and SMOs campaigns continue to increase consumer
awareness of condoms and influence consumption trends. As a result, attitudes are becoming more
liberal toward condom use. As further evidence of this, a growing number of consumers are willing to
spend more money on condoms and we are seeing an upward trend in consumption within the
commercial market. While governments are likely to hand out large volumes of condoms for free, this
does not guarantee their usage. Seeing that the commercial market is going quickly is an excellent
indicator that consumers are using more condoms as they are less likely to let product go to waste that
they spent money on. This improving market forecast shows that condom usage per capita is increasing
for the region and suggests that the rate of AIDS/HIV should be on the decline. Unfortunately, this is
difficult to substantiate since statistics for AIDS/HIV reports are inaccurate post 2008 due to capacity
issues for testing. Results that these campaigns increased positive behavioral change towards sexual
health in a supply-driven sector are inconclusive.
In the long-run, it is expected that the market composition will continue to shift towards the commercial
sector. Demand in the commercial sector will fill the gap made by the lack of supply/funding in the free
sector. In this time, barriers established from brand recognition of the larger players, like Rough Rider,
will dissipate as more and more international brands enter the market and consumers become more
comfortable with a wider selection of commercial products.
PSI and FPATT are expected to further promote “Cool Condoms” in 2013 and 2014, resulting in a return
to growth with socially marketed condoms. Despite this, retailers are confident that the commercial
Euromonitor International. 2012
25
brands have a greater staying power and loyalty among consumers, and that socially marketed condoms
will comprise a market that will not compete with commercial sales.
Funding sources and international aid for free/donated condoms appear to be in place for the forecast
period, but are not assured. As of 2011, UNFPA donated 25% less from the previous year and at the end
of 2012, the Red Cross will no longer distribute 100,000 condoms annually to the general public. USAID
has committed to contribute to the goal of 100 million additional users of modern methods of family
planning by 2015. Their (USAID’s) “action 2” project, as well as all other HIV/AIDS projects with their
respective funding, all end by 2014, with the exception of the Global Fund’s phase evaluation for their
fund occurring November 2012. Ultimately, in 2015, unless new projects are planned, there may be
another sharp decrease in the free-sector, unless the Government allocates more funds from their
budget. The commercial market will continue to represent a majority market-share.
Opportunities for Promoting the Total Condom Market in the Eastern
Caribbean
Overview of opportunities
What are some possible opportunities for advocacy that should be considered by Options?
According to a leading commercial distributor, “Once people have access to the product and try them,
once satisfied they tend to purchase and increase sales. Sampling is the most successful marketing
strategies in the market.” It was further discussed that one of the best means for brands to gain
exposure is by attaining the contract to provide the Government with free condoms. While this tactic
may be successful for an individual brand’s sales, most NGOs agree that distributing retail brands
through free distribution hurts the overall market by reducing consumer’s incentive to pay for retail
brands. We know that Caribbean consumers prefer name brand products and that retail growth over
the past year is testament to their willingness to pay for this. The government should look to minimize
the number of branded condoms that it distributes in order to encourage a shift to retail purchases from
consumers with the means to pay.
If branded condoms are purchased by the Government, the product should be labeled as “free” to avoid
leakage into the gray market. In order to address the stigma associated with the quality of free
condoms, the government should look to features that have aided successful brands in the market such
as clearly labeled American or German manufacturing and product attributes such as ribbing and
Euromonitor International. 2012
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flavoring.
1,400
1,200
1,000
800
600
400
200
0
3,500
3,000
2,500
2,000
1,500
1,000
500
-
Outlets
Units (000)
Condom Volume vs Retail Outlets (2011)
Units (000)
Outlets
According to another leading distributor, condoms are viewed as medical goods instead of social goods.
This perception significantly limits possible distribution channels for condoms, and as a result, we find
that condoms are available only in pharmacies or clinics. To put this in perspective, there were 239
pharmacies and chemists in the region in 2011, while there were 3,112 independent small grocers.24 Of
the total retailers in the region, pharmacies/chemists make up 7% of total outlets, while at the same
time, pharmacies/chemists make up 80% of commercial condom volume sales. Beyond expanding to
other retail channels, there is great potential for commercial condoms to see growth from tapping into
more untraditional markets where social interactions can lead to sex, including bars, nightclubs, and
vending machines that offer 24/7 access. Programs such as GIGI are actively encouraging and
distribution through these channels but commercial distributors need to begin considering these
channels as well – there is a great deal of opportunity for sales in the wide network of independent
small grocers.
24
Euromonitor International. Passport, Retailing 2012.
Euromonitor International. 2012
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